Currency - The inability of some countries within the West African Monetary Zone to meet up with the macroeconomic convergence criteria is currently threatening the take-off of the single currency regime for the sub region.
The development was confirmed on Thursday during the
37th meeting of the Committee of Governors of Central Banks of the West Africa Monetary Zone, which held at the headquarters of the Central Bank of Nigeria in Abuja.
The ECOWAS authority had approved the reduction of the macroeconomic convergence criteria from 11 (four primary and seven secondary criteria) to six criteria (three primary and three secondary criteria).
The three primary criteria being used are a budget deficit of not more than three per cent; average annual inflation of less than 10 per cent with a long-term goal of not more than five per cent by 2019; and gross reserves that could finance at least three months of imports.
The three secondary convergence criteria that have been adopted by ECOWAS are public debt/Gross Domestic Product of not more than 70 per cent; central bank financing of budget deficit should not be more than 10 per cent of previous year’s...
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